Return on ad spend (ROAS)
Return on ad spend (ROAS)
Return on ad spend (ROAS) can help you assess the effectiveness of a specific sponsored ads campaign, ad group, product, or targeting strategy.
ROAS is the total product sales divided by the total advertising spend. It’s represented as a number interpreted as an index rather than a percent. We calculate ROAS by dividing the total sales generated by the advertising spend invested on the campaign. For example, if you spent INR 20 on a sponsored ads campaign that generated INR 100 in sales, the ROAS will be 5.
ROAS is the inverse of advertising cost of sale (ACOS). We calculate ACOS by dividing advertising spend invested by the total sales generated. Learn more about ACOS.
ROAS is available for vendors and sellers in campaign manager and through downloadable reports. It includes attributed sales for advertised products. Attribution window varies by campaign and advertiser type.
| Sponsored Products | Sponsored Brands | Sponsored Display | |
|---|---|---|---|
| Sellers | 7 days | 14 days | 14 days |
| Vendors | 14 days | 14 days | 14 days |
How to use ROAS
Use ROAS to understand how efficient your advertising investment is at driving attributed sales. As ROAS increases, your campaign becomes more efficient. Depending on your performance goals, you can use ROAS to measure the effectiveness of ad products, campaigns, and keywords. Comparing ROAS over time or against similar tactics can help provide insight into where you should allocate resources.
